MS Global Franchise Fund

MS Global Franchise Fund

Last Update: 2014-09-09

Number of Stocks: 28
Number of New Stocks: 2

Total Value: $566 Mil
Q/Q Turnover: 2%

Countries: USA GBR CHE DEU FRA ITA JPN SWE
Details: Top Buys | Top Sales | Top Holdings  Embed:

MS Global Franchise Fund Watch

  • MS Global Franchise Fund Comments on Admiral Group PLC

    The team became more wary of Admiral (LSE:ADM) after the 2011 turbulence in the stock price, after a scare about the potential for large personal injury claims. While the 2011 claims ratio eventually turned out to be fine, it caused a revision in our view of the quality of the name. The combination of the stock’s recovery, and long-term concerns about the effect of autonomous driving on the motor insurance industry, caused us to reduce and then exit the position.

    From MS Global Franchise Fund (Trades, Portfolio)’s Second Quarter 2014 Commentary.  


  • MS Global Franchise Fund Comments on Publicis Groupe SA

    Publicis (XPAR:PUB) is one of the world’s leading global advertising services companies. We believe it is the most forward thinking of the large advertising players in the way it has positioned itself for the digital age. Unlike peers, the company balance sheet is run with low financial leverage and the return on investment in acquisitions is closely monitored. This focus on unlevered returns is likely to be because of the strong influence of Chairman Elizabeth Badinter, owner and daughter of the founder. Whilst it is a little cyclical, the high focus on return on operating capital, together with its leading strategic positioning, make this business attractive, as is the valuation, with the company trading on a free cash flow yield of over 8%.

    From MS Global Franchise Fund (Trades, Portfolio)’s Second Quarter 2014 Commentary.  


  • MS Global Franchise Fund Second Quarter 2014 Commentary

    Performance Review


    In June, the Global Franchise Portfolio returned -0.27%, underperforming the MSCI World Index which returned 1.79%. In the second quarter, the Portfolio returned 4.73%, marginally underperforming the Index which returned 4.86%. Year to date the Portfolio has returned 5.54% versus 6.18% for the Index.

      


  • MS Global Franchise Fund Comments on Time Warner Cable Inc

    During the quarter, we initiated a position in Time Warner (TWC)(3.0%), which is one of the largest U.S. cable network businesses and parent company of Warner Brothers film and TV studios. Time Warner networks include CNN, HBO and Turner Networks. Return on operating capital at the cable networks is currently over 50% and closer to 15% at the film studios. We believe Time Warner is one of the best run cable network businesses in North America as it offers almost pure exposure to high return businesses where other networks companies often do not. The company is the leader in original scripted content in North America and also has a leading film franchise. It has an extensive film library and is able to monetize its content not just in the U.S., but globally. The stock is trading on a free cash flow yield of about 7%, with free cash flow expected to grow over 6% per year for several years to come.

    From MS Global Franchise Fund (Trades, Portfolio)’s First Quarter 2014 Commentary.  


  • MS Global Franchise Fund First Quarter 2014 Commentary

    Performance Review


    In March, the Global Franchise Portfolio returned 0.53%, outperforming the MSCI World Index, which returned 0.14%. For the first quarter, the Portfolio returned 0.77% and the Index returned 1.26%.

      


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